by Jackie Navarrete
Gen Z is shaping the landscape and redefining consumer behavior. How will you adapt?
In 2025, a significant shift is occurring in the marketplace, and it’s being led by none other than Generation Z. Born between 1997 and 2012, Gen Z has grown up in an entirely digital world. They’re tech-savvy, socially conscious, and unapologetically bold about what they expect from the brands they support. As they come into their prime spending years, businesses of all sizes are starting to notice that the traditional playbook for attracting and retaining customers just doesn’t cut it anymore.
From fashion to finance, Gen Z is rewriting the rules. Their unique outlook, shaped by economic uncertainty, climate change, and the ever-evolving internet, has made them into intentional and values-driven consumers. Let’s explore how Gen Z is transforming consumer behavior in 2025—and what your business can do to keep up.
Values Over Everything
For Gen Z, buying a product is about more than just the item itself. It’s about what that purchase represents. This generation is highly value-driven, meaning they prefer to buy from companies that align with their beliefs on social justice, sustainability, and equality.
In fact, according to a 2024 McKinsey report, over 70% of Gen Z consumers say they actively research a brand’s ethics before making a purchase. That includes checking for things like:
- How environmentally sustainable the company is
- Where and how products are made
- The company’s stance on social issues
Businesses that demonstrate transparency and commit to causes Gen Z cares about are the ones winning their loyalty. It’s not enough to talk the talk—this generation expects brands to walk the walk.
The Rise of the “No-Buy” Movement
Another trend that’s catching fire in 2025 is the “No-Buy” movement. Fueled by economic uncertainty and environmental concerns, Gen Z consumers are becoming more intentional with their spending.
What does that mean? It means many Gen Zers are:
- Buying secondhand whenever possible
- Practicing minimalism
- Delaying or skipping purchases to avoid excess
While this may sound alarming to traditional retailers, it actually presents a unique opportunity. Businesses that offer resale options, sustainable alternatives, or focus on long-term product value can still thrive. Gen Z isn’t against spending—they just want to spend smarter.
Social Media Isn’t Just Social Anymore
TikTok. Instagram. YouTube Shorts. If you think social media is just about selfies and memes, think again. Gen Z uses social media as a search engine, a product discovery tool, and a review aggregator all rolled into one.
It’s where trends start, brands are discovered, and buying decisions are made. One viral video can sell out a product in 24 hours. But here’s the kicker: Gen Z doesn’t fall for polished, overly-produced ads. They want authentic, raw, and relatable content.
Influencer marketing still works—but it’s the micro-influencers and real customers who are making the biggest impact. Gen Z is far more likely to trust a TikTok creator with 10,000 followers who gives an honest review than a celebrity endorsement with millions.
Nostalgia is the New Luxury
While Millennials were all about innovation and newness, Gen Z has a serious soft spot for the past. Retro fashion, Y2K aesthetics, Polaroids, Tamagotchis—you name it. Nostalgia marketing is booming because it taps into a desire for comfort and familiarity in an otherwise chaotic world.
Brands that manage to blend the old with the new are striking gold. Whether it’s a limited-edition re-release of a classic product or a retro-inspired ad campaign, Gen Z responds well to things that make them feel something—even if they weren’t alive when it was popular the first time around.
Mental Health is a Must-Have
Gen Z is the most mental health-conscious generation we’ve ever seen. They’re open about their struggles and demand that the companies they support are too. Gone are the days of glossing over well-being in favor of hustle culture.
Brands that prioritize mental health—whether through workplace policies, customer support, or product messaging—are resonating with this audience. It’s not uncommon to see Gen Z favor a brand just because it actively promotes mental wellness, shares resources, or partners with mental health organizations.
Purpose-Driven Shopping
It’s not just what Gen Z buys, it’s why they buy. They crave connection. They want to support small businesses, minority-owned brands, and companies that are doing good in the world. In fact, a survey by First Insight showed that 73% of Gen Z are willing to pay more for sustainable products.
But beyond sustainability, this generation is increasingly interested in supporting businesses that offer unique experiences and serve real communities. They are more likely to shop from a business that feels personal—a brand that talks like a friend, not a corporation.
What This Means for Small Businesses and the Payment Industry
So what does all of this mean for us at Velocity Merchant Services and the merchants we serve?
It means opportunity.
At VMS, we’ve always believed in small business. We know that Gen Z does too. They’re not just interested in faceless mega-corporations. They want to support local bakeries, independent salons, up-and-coming designers, and family-owned restaurants.
This is where we shine. We help small businesses offer modern, seamless, and mobile-friendly payment solutions that Gen Z expects—like contactless payments, digital wallets, and QR code ordering. We also provide point-of-sale systems like Clover that allow for loyalty programs, social integrations, and customer engagement tools—all essential for capturing Gen Z’s attention.
And we’re not stopping there. By offering cash discount programs, EBT acceptance, and custom website design, we empower business owners to stay competitive in this ever-changing landscape. Gen Z may be changing the rules, but with the right tools and support, small businesses can not only keep up—they can lead.
Final Thoughts
Gen Z is not just another generation to market to—they’re redefining what it means to be a consumer. They’re thoughtful, digital-first, and driven by purpose. And while their expectations may be high, so is their loyalty once it’s earned.
For more insights like this, keep up with the VMS blog—where small business meets big tech without the fluff.
At Velocity Merchant Services, we believe the businesses that succeed in 2025 and beyond will be the ones that listen, adapt, and lead with values. Gen Z has spoken. Are you ready to answer?
Believe in Small Business. Believe in the Future. Believe in Gen Z.
